Access to $10,000 Superannuation in Virus Hardship Cases

In that case, then, you would appear to qualify. You can always ask the ATO before you apply.

 

ATO vows to crack down on Aussies planning to withdraw $10,000 from their super | Daily Mail Online

The ATO have indicated they will chase false claims

 

A trustee or company can't retrospectively employ anyone. One of the jobkeeper and cashflow boost tests is a contract and other evidence of employment...gainful employment. And payment prior to 12/3
If attempting to simulate employment to meet a test it may be costly

 

I didn't claim otherwise

 

I didnt suggest you had. You arent that inclined. But the key message to all who see the posts is that efforts to alter arrangements to access stimulus benefits is all well covered by laws to prevent such acts. Most are treated harshly too. I would say I have had this discussion with 100+ people since Mid March and the predominant request is to backdate being a employee.

95% of them think I'm being difficult. I dont like the criminal and professional implications for defrauding the Govt. Some legit taxpayers have been caught in the net too and I feel for them.

 

The ATO data matching is VERY good, I expect it’s inevitable that we read about all the people accessing their super when not eligible and being stung with hefty fines.

 

This past weekend, ATO clarrified the penalty is $12,000 per false declaration. And income tax on the $10K would be a further consideration by the Commissioner in amendment and a taxpayer seeking a recontribution most likely would have Part IVA applied to cancel the deduction.

Not sure its ATO waving a stick or signalling to those who are discussing this in many forums and online (ozbargain we are looking at you).

 

I work in defence, had a few guys here apply and get it because there was a period we were to remain home due to covid, which they claimed as reduced working hours, although our pay was not affected, being govt.

 

ATO certainly left it grey. States 20% drop in hours with no reference to income.

 

The ATO position on reduced hours is UNPAID. If you work at home or are paid to take leave then you are ...on leave and still "on work" rather than "at work". Much the same as annual leave, sick leave and other forms of non-attendance. And workers comp.

eg Stephanie works for a hotel and was placed on jobkeeper but was initially stood down and applied for jobseeker (which she later cancelled) . She has 0 hours work where she normally had between 8 and 30 hours a week. Using 8 her hours fell 100%. She meets the test even if the hotel reopended the followg month. She is also receiving jobkeeper and satisfies two tests. PASS

eg Raj works for a small commercial airline that delivers freight. He worked full time prior to Covid. He kept working but for just 10 hours for several weeks and his employer has reduced his pay with the hours increasing to now 32 hours a week. He clearly met the reduced hours test. But applies for release today. FAIL. Why ? His working hours are only 16% reduced at the time he applies for release.

eg Mick is a soldier. ADF told him to pack his gear and go home until it blows over. He is being paid. After 6 weeks he was called back to barracks despite he cant do much so attends just 8 hours a week. He is not unemployed and has no lost income. His gainful hours are the same despite the fact all he can do is play call of duty of his Ps5. FAIL


Imagine if all employees could ask for a few days off in a week and all employees in Australia become entitled to draw down their super beacuse there are no working hours those days? Hey call in sick 1 day in a week and everyone can do it. You gotta be kidding. That would be a bigger scam than underpayments by celeb chefs. Either a hell of a lot of taxpayers found a brilliant loophole or they all made a mess of this.

COVID-19 Early release of super - integrity and compliance

I doubt they may apply false declaration penalties but that $10K is likely assessable income when they catch up. ADF report single touch payroll every fortnight. Not a difficult data matching exercise.

 

I’m in agreement with Paul on this one.

I know people boasting they got $10k from their super despite their working hours or income haven’t dropped and claiming the ATO don’t care. I wouldn’t be so sure.

 

Not so sure of the ATO's credential on data matching - how good was the Robodebt matching from Centrelink payments and ATO income and etc ...?

If the ATO matching was so good, would they not able to tell which businesses have 1500 staff or claimed $1500 per staff .... simple reconciliation dont you think that took how many months before disclosure of billions of $ dont need?

 

Centrelink have terrible IT it's old tech wrapped in sticky tape and they have like 10 systems all unintegrated. The ato use the defence super computer. Cost billions.

That was Treasury maths. A guess nobody validated. Blaming the ATO was a media stunt. They costed more than actual. Zero lost.

They won't chase this now. Bad media. It's mid year policy on recovery will be good media. All those who broke the law.

 

I agree @Paul@PFI. I'm just looking at it from an everyday worker perspective. Most see 20% reduced hours on the main ATO page and say "hey that's me".

IMO ATO have made this far too grey to the average punter.

 

The average worker who is on annual, sick or other leave if asked "are you unemployed" would say "no I 'm having a day off".

Why does a $10K cash withdrawal suddenly make everyone nieve and foolish ? Perhaps the simple process to aply. Click and its done. No upfront substantiation needed. Its like a ATM with the cash hanging out and you walk past and help yourself. In the day after this was announced all the questions and requests were about how to game it with many arguing they would apply anyway. I read a few isolated posts about those who needed it.... Its a great idea for them. ATO didnt write the law. The ATO must use the words in the EM and the law and interpret. what reduced working hours means... and they have. It means reduction in paid hours. Can a person who gets a 20% pay cut claim - Not if they work 38hrs a week. Yet I have seen two people claim the $10K using that view. On was after I advised them to the contrary because they read a post on ozbargain.com.au and thought it sounded better than what I said.

ASIC made it easy for taxpayers to seek advice before acting. Tax agents and Financial Planners can give specific early release advice provided it only addresses that and they charge no more than $300. How many did that ?

I'm waiting for the July release. I think it will be even worse with some who falsely applied prior to 30 June doing it again thinking you have entitlement because of the first release.

 

On this topic - everyone plz check your super - lot of fraud going around at the moment - Get a sms about super - do not ignore it assuming its a scam

 

There is so much grey area, it’s almost like it was written to get the money out there.
This particular one people could say “this fortnight I did 20 hours overtime, the following fortnight I did no overtime”

 

Just the warning that ATO will use data matching techniques and is planning to go after the people who withdrew their super, even if they were not entitled to do so. Here is the link to the article.

https://www.theage.com.au/money/sup...-hardship-super-payments-20200702-p558e4.html

 

I don't think there is any grey area. Have a look at my post on the legislation.

 

As my earlier post indicated, The laws dont allow that as a test. The usual hours test is a prescribed period 6mths prior to 1 January.In the example in the law it gives an example or two (only one for a employee) using average hours but thats for a causal and it doesnt touch on OT. The only grey part is whether "usual hours" allows regular OT, or infrequent OT to be a calc in hours or not. Its arguable that usual hours could mean ignoring overtime too. What did the ATO give as their view ?